Colombo, Jan 18 - Sri Lanka Wednesday said it will not face oil shortage due to the US sanctions on Iran's fuel imports.

Petroleum Minister Susil Premajayantha told reporters that the government has already begun hoarding oil and discussions with Oman and Saudi Arabia are on for supplies.

Iran is Sri Lanka's largest oil supplier. It spends about $4 billion on oil imports annually.

Iran and Sri Lanka have had close diplomatic ties since President Mahinda Rajapaksa took office. The US sanctions could mean the country will have to consider alternatives.

Premajayantha said that the six-month grace period before implementation of the new sanctions would provide enough leeway for the government to find a solution, Xinhua reported. (IANS)